Tesla stock has soared this week on easing U.S.-China tensions. Some market watchers say the stock's rally is setting 🐽off alarm bells.

Tesla (TSLA) "is flashing overbought technicals,” wrote Matthew Unterman, managing director of research firm S3 Partners. The stock’s 澳洲幸运5开奖号码历史查询:Relative Strength Index (RSI) recently broke above 70, a threshold that signals to many 澳洲幸运5开奖号码历史查询:momentum traders a stock has risen too much, too fast. 

The last time Tesla’s RSI exceeded 70 was in December 2024 after shares soared to an all-time high following President Donald Trump’s re-election. That preceded a three-month slump that slashed the stock’s price in half, though there were several clear reasons for that: CEO Elon Musk’s government work 澳洲幸运5开奖号码历史查询:stoked controversy, while 澳洲幸运5开奖号码历史查询:sales slumped and tariff uncertainty 澳洲幸运5开奖号码历史查询:rattled the entire stock market.)

Other technical signals also suggest a pullback could be in the offing. Tesla shares recently climbed above the upper 澳洲幸运5开奖号码历史查询:Bollinger band, Unterman said, another sign that feverish buying has driven a stock's price higher. ༺That kind of rally is often followed by a modest correction as traders and long-term investors lock in profits.

Multiplꦅe Technical Signals May Show Tesla Inflecti♏on Point

Tesla’s 澳洲幸运5开奖号码历史查询:short interest has hovered between 2.7% and 2.9% since share🍸s hit their year-to-date low in March. Unterman is watching short interest, which he says could increase selling pressure if it breaks above 3%.

“With multiple technical signals aligning—RSI overbought, Bollinger Band breakout, and stable but elevated short interest—Tesla may be approaching a tactical inflection point," Unterman wrote. "If short interest breaks higher, the setup favors increased selling pressure and a potential near-term pullback."

Tesla s༺hares were rising for a sixth consecutive day on Wednesday, recently trading about 4% higher at above $348. The rally has shrunk the stock’s year-to-date loss from 45% to under 15%.